Fastned B.V. (AMS:FAST): Are Analysts Optimistic?

We feel now is a pretty good time to analyse Fastned B.V.'s (AMS:FAST) business as it appears the company may be on the cusp of a considerable accomplishment. Fastned B.V., together with its subsidiaries, engages in the construction and operation of charging stations for fully electric cars. With the latest financial year loss of €19m and a trailing-twelve-month loss of €20m, the €453m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Fastned B.V's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Fastned B.V

Fastned B.V is bordering on breakeven, according to the 9 Dutch Specialty Retail analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of €15m in 2026. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 62% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Fastned B.V given that this is a high-level summary, but, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Fastned B.V currently has a debt-to-equity ratio of 154%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Fastned B.V, so if you are interested in understanding the company at a deeper level, take a look at Fastned B.V's company page on Simply Wall St. We've also compiled a list of important factors you should further research:

1. Valuation: What is Fastned B.V worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Fastned B.V is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Fastned B.V’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.